Financial Accounting

1Mark-up of 25% on cost is equivalent to a margin of

2Cost of sales = opening inventory + purchases −

3Rent owing at the end of the year is shown in the statement of financial position as

4Opening inventory GH¢2,000, purchases GH¢10,000, closing inventory GH¢3,000. Cost of sales is

5Carriage inwards is treated in the final accounts as part of

6Cost of sales GH¢30,000; average inventory GH¢5,000. The rate of inventory turnover is

7Capital at start GH¢20,000; net profit GH¢6,000; drawings GH¢2,500; additional capital GH¢1,000. Closing capital is

8Carriage outwards is shown in the income statement as

9Rent of GH₵ 1,200 is due for the year, but only GH₵ 900 has been paid. The GH₵ 300 is

10Net profit is added to